Kristian Behrens, Manassé Drabo, Florian Mayneris, 01 February 2022

Cities are more vulnerable to economic shocks than to physical destruction. Yet, little is known about the factors that enhance their resilience to such shocks. This column uses data from Canada to show that cities that are more severely hit by big-plant closures and mass layoffs see their population shrink, especially among the young and working-aged residents. However, the initial presence of public and cultural services helps mitigate the adverse effect of massive job displacement on a city’s population.

Andrew Foote, Michel Grosz, Ann Stevens, 17 November 2015

In light of the Great Recession, we continue to learn new ways in which economic downturns directly affect the labour market. This column suggests that following an adverse demand shock, individuals exit local labour markets primarily through migration, but that has become less prominent in the Great Recession. Faced with declining economic prospects, workers are becoming more likely to stay put, without re-entering the labour market. 

Peter Auer, Raphael Auer, Simon Wehrmüller, 21 November 2008

What is causing the mass US layoffs, decreased demand or more expensive financing? This column presents new research showing that two-thirds of the variation in employment across companies is due to their varying dependence on credit. In short, cheap capital is important for employment.

Events

CEPR Policy Research